Air India: Shock to Air India in the case of 988 crore refund, now also fined 11 crore

The US government has fined Air India $1.4 million or about Rs 11.38 crore, for the delay in refunding money to affected passengers due to the cancellation or rescheduling of flights during the COVID-19 pandemic. The US Department of Transportation said on Monday that the Indian airline company Air India is among the six airlines that have been ordered to return $ 600 million as refunds to the passengers.

Indian Airlines has been directed to refund around $121.5 million (Rs 988 crore) to the affected passengers. In this case, officials say that Air India's provision of refunding at the request of passengers is contradictory to the policies of the US Department of Transportation. There is a rule in the US that the airline must legally refund the passenger's ticket money within 100 days after the flight is canceled or changed.

During a departmental inquiry, it has been revealed that Air India has to process more than half of the refund applications within the stipulated 100 days. Let us tell you that these cases of delay in refunds are before the takeover of Air India by Tata Group. Besides Air India, the US government has fined Frontier, TAP Portugal, Air Mexico, EIAI, and Avianca Airlines.

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